BOJ Hikes Benchmark Rate to 1.25% Amid Inflation Fears

The Bank of Japan has raised its benchmark interest rate to 1.25% in a split vote, amid investor expectations that the central bank would act to keep inflation in check.

The decision follows a two-day board meeting and marks the first rate hike since 2000, when the BOJ last adjusted its policy rates.

The move is seen as a step towards monetary tightening, with some market participants predicting that the BOJ will continue to raise interest rates in the coming months.